UK tourists face a staggering £66 increase in air passenger duty as a result of the Labour Party government Budget. The current rates for APD until 31 March 2025, for domestic flights, are at a reduced rate £7, standard rate £14, higher rate £78. Band A is reduced rate £13, standard rate £26, higher rate £78. Band B is reduced rate £88, standard rate £194, higher rate £581 and band C is reduced rate £92, standard rate £202, higher rate £607.
In the first rise, from 1 April 2025 APD rates will be, for domestic flights, rated at reduced rate £7, standard rate £14, higher rate £84. Band A will be hiked to a reduced rate £13, standard rate £28, higher rate £84. Band B will be hiked to a reduced rate £90, standard rate £216, higher rate £647.
Band C will be hiked to a reduced rate £94, standard rate £224, higher rate £673. Band C (over 5,500 miles) includes long-haul destinations such as Australia and New Zealand. Band B (2,001 to 5,500 miles) adds holiday hotspots such as Egypt and Barbados.
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Ms Reeves told the Commons: “Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight. But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%. That is equivalent to £450 per passenger for a private jet to, say, California.”
The government said its understanding is that “airlines and aircraft operators ordinarily pass the cost of APD through to the consumer in prices” but added this is a “commercial decision for the airline or operator”. Ryanair CEO Michael O’Leary said at an industry conference in Brussels earlier this month that flights may axed next summer if aviation taxes were raised in the Budget.
At the Brussels meeting, Mr O’Leary called APD a “penal tax on the poor” and said an increase in APD, currently £7 for internal flights, would mean a decrease in customer demand and a “cut in capacity”.
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